TSMC To Spend $100B On Five New US Chip Factories To Meet Booming AI Demand
TSMC announced plans to invest an additional $100 billion on advanced chip manufacturing in the United States, bringing its total US investment to $165 million. As part of the bolstered spending, TSMC will build five new factories, including three fabrication plants and two advanced packaging facilities. It's also planning to erect a "major R&D team center" on US soil.
News of the hefty investment on US chip operations comes on the heels of rumors claiming that both Broadcom and NVIDIA are testing Intel's chip manufacturing mettle, along with AMD evaluating Intel's 18a process node for future chips, according to a recent Reuters report. Intel has made some major chip manufacturing investments of its own, and TSMC's expanded investment could bring some major competition as both companies look to capitalize on booming AI demand.
According to TSMC, it's bolstered investment will create hundreds of billions of dollars in semiconductor value for AI and other advanced applications. The company anticipates creating over 40,000 construction jobs over the next four years, and tens of thousands of high-paying tech jobs withing advanced chip manufacturing and R&D fields.
"Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality," said TSMC Chairman and CEO Dr. C.C. Wei. "AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications. With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our U.S. semiconductor manufacturing investment by an additional $100 billion, bringing our total planned investment to $165 billion."
Speaking of the Arizona site, TSMC says its expanded investment will drive more than $200 billion of indirect economic output in the state and across the US over the next decade. At present, TSMC's Arizona fab spans around 1,00 acres and employs over 3,000 people. It's been in volume production since late 2024.
It will be interesting to see how the landscape shakes out with TSMC and Intel both spending big on US chip operations. Both have access to some pretty big customers, which in addition to the ones mentioned above also include Apple and Qualcomm.
